Aussie producers warned they must also pay to tackle animal disease outbreaks

Australia's livestock and wool industries have been warned to brace themselves for a massive financial hit if the feared outbreak of an animal disease occurs.

They will have to pay their share of the clean-up costs.

Under agreed national arrangements, producers would have to pay 20 per cent of the cost of the response to an outbreak of foot and mouth disease.

This is on top of the devastating cost to individuals from lost markets and possible on-farm impacts, like culling.

With some estimates putting FMD's potential impact as high as $50 billion, producers would need to pay their one fifth share through increased transaction levies over 10 years.

If the outbreak were the other grave threat, lumpy skin disease, at the moment producers are up for half the total bill - again to be paid back over 10 years.

Government experts calculate a lumpy skin disease outbreak could cost Australia more than than $7 billion in its first year.

This is why beef and dairy farmer groups want lumpy skin disease to be given a stronger priority under national arrangements, to bring it into the same category as FMD.

This would avoid the expensive 50/50 cost sharing deal, to access the 80/20 arrangement.

Experts believe lumpy skin disease is much more likely to arrive in Australia before FMD.

African swine fever is also lurking dangerously close to Australian shores and shares the same category as lumpy skin, with the 50/50 cost sharing arrangements.

An ACIL Allen impact modelling report on an African swine fever outbreak has predicted it could cost Australia's 3700 pig producers, plus meat processors, transport operators and others linked to the meat industry, $2.03 billion over five years.

The wool industry is considering how best to prepare for an animal disease outbreak, given it does not have the same levy arrangements and only $5 million tucked away for an animal disease outbreak.

Red meat livestock industry bodies are signatories to the federal Emergency Animal Disease Response Agreement which sets out the response to 66 categorised animal diseases.

The government is expected to "initially" cover an industry's cost-sharing obligations but the relevant industry "will then repay the government within a reasonable time period - generally up to 10 years".

The cattle and sheep industries fund their industry commitments through transaction levies paid through the sale of stock.

Those industry levies pay for marketing, research and development and a small contribution for Animal Health Australia, which is responsible for reacting to animal disease outbreaks.

But most producers do not realise their levies also include a component called Emergency Animal Disease Response Agreement or EADRA levy which currently lays dormant but would be "activated" to repay the government for the industry share of an outbreak.

The size of that "extra" payment would still need to be negotiated and would depend on the actual cost of the outbreak, but still needs to be paid.

Wool Industry Australia has estimated a FMD outbreak would cost the industry an estimated $2.2 billion in revenue alone over a decade.

Australian Wool Innovation has been questioned over its preparedness for an outbreak.

Victorian Farmers Federation livestock group president Steve Harrison suggested during a webinar with AWI last week they should consider doubling the size of its outbreak emergency fund.

AWI chairman Jock Laurie said both AWI and growers were operating in a tight financial environment.

"What other industries have is a levy mechanism set up ... so in the very unfortunate position that that did happen there is a cost sharing arrangement ... the other industries they trigger a levy and the levy pays a pool of funding for the management of that (outbreak), under an agreement of 80/20 with the Federal government," Mr Laurie said.

Mr Laurie said the wool industry was in discussions with industry bodies about establishing a levy which could potentially collect those funds.

"If the wool industry doesn't do it we still have an obligation to meet that 20 per cent funding over a period of time and we need to think about how we are going to do it and AWI is not a position to turn around and pull that money out."

Source: Chris McLennan, Farmonline National, 2 November 2022

Australian dairy organisations work to manage disease threats

The detection some months ago of lumpy skin disease in countries close to Australia had the Australian dairy industry on alert. However, the news that foot and mouth disease had now been detected in Indonesia - including the popular Australian tourist destination, Bali - has significantly heightened biosecurity concerns.

All dairy farms should already have a sound biosecurity plan in place, but the threat of LSD and FMD means that now is the time to review and update farm's plan.

The potential damage that these diseases could do to Australia's dairy industry - and the wider national economy - is significant. Australia has been FMD-free since 1872 and everyone within the dairy industry must strive to ensure that an incursion of the highly contagious viral disease, which affects cloven-hoofed animals, does not happen.

The federal government is responsible for enforcing biosecurity at the Australian border and has already enacted a range of measures aimed at preventing an incursion of FMD into our country. Dairy Australia is working closely with key industry bodies, including Australian Dairy Farmers and the Australian Dairy Products Federation, to provide an industry-wide response to the threat of FMD and LSD.

Dairy Australia is also focused on providing the dairy industry with all the resources and information they need to prepare for, and prevent, a possible incursion of either FMD or LSD, as well as respond to any incursion should either disease enter the country.

A new Emergency Animal Disease Preparedness page has been set up on the Dairy Australia website to collate all the latest information and resources on LSD and LSD. All farmers and dairy industry professionals are encouraged to visit the webpage, familiarise themselves with the signs of both FMD and LSD and review the biosecurity and other information available. Visit website dairyaustralia.com.au/fmd.

Quick detection and response to these diseases gives our industry the best chance of eradication.

Report any suspicious signs in your animals to the Emergency Animal Disease Watch

Hotline on 1800 675 888.

FREQUENTLY ASKED QUESTIONS

What are the risks?

An outbreak of either disease would cost the Australian dairy industry billions in loss of international trade, the cost of the response, and the potential loss of cattle. Even if no dairy farms are directly infected, all dairy and cattle trade will be impacted by international market loss.

What are the diseases?

Lumpy skin disease is a cattle disease (including buffalo), mostly transmitted by biting insects. This causes skin lumps, reduced milk production, weight loss fever and abortion. This disease is most likely to come into Australia by insects blown across to Northern Australia on monsoon winds.

Foot and mouth disease is a disease affecting cloven-hoofed (two-toed) animals (e.g. cattle, goats, sheep, pigs and camelids). It may cause blisters or ulcers in the mouth, feet and teats as well as lameness, a drop in milk production or even sudden death in calves. This disease is more likely to be bought into Australia by the illegal importation of infected meat products, feeding of human table scraps to pigs or on contaminated clothing or shoes.

What is the industry doing?

To address these risks, the Commonwealth, State and Territory governments - along with relevant industries - are working together to prevent and prepare for an incursion. Dairy Australia and Australian Dairy Farmers (ADF) are involved in a cross-industry taskforce that is coordinating work to ensure all impacted industries have input into government plans and enable collaboration on any research needed. The federal department and Australian chief vet regularly participate in the cross-industry taskforce meetings.

The Australian dairy industry has also activated an emergency animal disease response team to develop relevant dairy resources and technical information to prepare for potential incursions of either FMD or LSD. This work is split into key areas, including preparedness and prevention, policies and response for post-incursion, industry training opportunities, trade and market access and communications.

Dairy Australia and ADF are both members of Animal Health Australia and are heavily involved in the current revisions of the AUSVETPLAN emergency animal disease response manuals for both these diseases. Managed by Animal Health Australia, AUSVETPLAN provides a nationally agreed approach for the response to an emergency animal disease, and the dairy industry is working hard to ensure these agreed approaches account for dairy production systems.

What can farmers do?

While the risk of one of these diseases coming on to a farm may seem remote, excellent biosecurity and surveillance by farmers is the industry's best protection.

If anyone see anything suspicious, such as skin lumps, blisters in the feet, mouth or on the teats, and fevers, lameness, drooling, sudden drops in milk production, sudden death in calves, they should speak to their vet, government vet, or contact the Emergency Animal Disease Watch Hotline on 1800 675 888. Finding the disease early gives us the best chance of eradication.

Good biosecurity practices are also vital to reduce the spread of diseases. Keeping track of visitors and conducting staff and visitor risk assessments, maintaining traceability obligations under the National Livestock Identification Scheme (NLIS), keeping tanker tracks clear of mud and manure, and ensuring gear used on multiple farms (e.g. veterinary equipment) is cleaned and disinfected after every use is a good starting place in preventing any disease spread.

Source: Stock & Land, 10 October 2022